Applying Nordic Energy Efficiency and Renewable Energy Solutions in Kaliningrad Oblast, Russia

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Tero Ahonen, Mika Luoranen, Jero Ahola, Jussi Tuunanen

APPLYING NORDIC ENERGY EFFICIENCY AND RENEWABLE ENERGY SOLUTIONS IN KALININGRAD OBLAST, RUSSIA

Partly financed by the EU ISBN 978-952-265-438-0 (PDF)

ISSN-L 2243-3384 ISSN 2243-3384 Lappeenranta 2013

LUT Faculty of Technology LUT Energy

LUT Russia-related Studies

LUT Scientific and Expertise Publications

Raportit ja selvitykset – Reports 7

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LUT Energy

LUT Russia-related Studies

LUT Scientific and Expertise Publications Report 7

APPLYING NORDIC ENERGY EFFICIENCY AND RENEWABLE ENERGY SOLUTIONS IN KALININGRAD OBLAST, RUSSIA

Tero Ahonen, Mika Luoranen, Jero Ahola, Jussi Tuunanen

This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of Baltic Development Forum and can under no circumstances be regarded as reflecting the position of the European Union.

Lappeenranta 2013

Lappeenranta University of Technology 2013 ISBN 978-952-265-437-3

ISBN 978-952-265-438-0 (PDF) ISSN-L 2243-3384

ISSN 2243-3384

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Abstract

Author Tero Ahonen, Mika Luoranen, Jero Ahola, Jussi Tuunanen Title Applying Nordic energy efficiency and renewable energy

solutions in Kaliningrad Oblast, Russia

Year 2013

Keywords Buildings, Energy efficiency, Nordic policies, Technical solutions

ISBN 978-952-265-437-3 ISSN 2243-3384

RENSOL (Regional Energy Solutions) project deals with the use of Nordic energy efficiency and renewable energy solutions in Kaliningrad Oblast to tackle the climate change.

Overall objective of the RENSOL work package 1 is to build awareness and knowledge on solutions for energy efficient buildings and street lighting applications. This project report describes available solutions to improve housing energy efficiency.

Firstly report discusses about barriers and possible solutions related to the housing energy efficiency improvements. Nordic solutions to improve energy efficiency in buildings are then introduced. Energy efficiency in street lighting applications is also studied. Two example cases in Kaliningrad Oblast are finally studied with a modelling tool, and their energy efficiency improvement potentials are determined. Based on the obtained results, suggestions for improvement actions are given. Finally, generalised conclusions are formed according to the obtained results.

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Executive summary

Executive summary

Here, main findings of the conducted study are listed:

There is need both for political and financial instruments supporting energy efficiency actions, and practical guidance for conducting successful energy efficiency improvements. Especially motivation or even regulation towards energy renovations and having sustainable financing methods for them are seen important factors.

Technically there are proved solutions available that can be used for improvements: in practice, it is important to have a clear plan on renovations that will be done, so correct technical solutions can be selected for the building. Also the forthcoming changes (e.g. improved district heat availability) should be asked from the municipality, as they affect feasibility of different technical solutions.

Simulation tool can be used to have indicative results for the building energy efficiency, and the effect of different actions can be tested with it. However, the simulation tool cannot consider leaking pipes, opened windows, non-operating heaters etc. that have a notable effect on the building energy consumption.

Therefore, site inspections and interviews are as important to determine the present condition of the building and possibilities for technical improvements: for instance, ineffective use of electrical appliances and waste of heat can be detected by site inspections.

In the studied cases, improvement of heating system operation (both space and water heating), ventilation and insulation were seen important factors to improve both housing energy efficiency and quality of living. However especially insulation- related improvements tend to be costly and laborious, which is why they may not be the most realistic alternative for older buildings. In such cases, improvements in heating system operation should also look through if some parts of the building are unnecessarily warm, and there is no possibility to control the room temperature energy efficiently.

Besides heat, energy savings can also be obtained with the more efficient usage of

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electricity (LED lighting, energy efficient appliances, etc.).

Of the studied renewable energy solutions, air heat pumps, sun collectors and PV solar panel systems are seen as a feasible topic for future study. As an example, separate electric water boilers could be replaced with a centralized solution where a sun collector or a heat pump is used to heat water instead of direct electric heating. Related to this, also other sources of waste heat (exhaust air, waste water) can be used as a heat source for domestic water heating where applicable.

However, the practical use of these solutions can be limited by the building structure and available area for the devices. Therefore, the feasibility of having new devices in the building needs to be studied case by case.

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Chapter 1

1 Introduction to RENSOL project

RENSOL (Regional Energy Solutions) project deals with the use of energy efficiency and renewable energy solutions in Kaliningrad Oblast to tackle climate change. The project is divided into five work packages with the following main targets:

WP 1 builds knowledge on possible solutions through identification of the latest energy efficient and renewable energy solutions in Finland, Sweden and Denmark, and adapting them to the Kaliningrad context. Besides this project report, a study trip to Nordic countries has been organized in spring 2012 as a part of this work package to realize new partnerships and co-operation. Work in the WP 1 has especially produced partnership between Lappeenranta University of Technology (LUT), Immanuel Kant Baltic Federal University (IKBFU) and Environmental Center “ECAT-Kaliningrad”, which is closely used in the Green Light project for having video conference between Finnish and Russian students [Norden, 2013]. Also the production of common research papers both in English and in Russian by LUT and IKBFU is under consideration.

WP 2 deploys the obtained knowledge of WP 1 by producing an analysis of existing energy saving street lightning (LED) projects in municipalities of Kaliningrad Oblast and presenting an analysis of best available technologies (BAT) on energy efficient housing and accommodating financial mechanism to stimulate deployment of energy efficient technologies in buildings.

WP 3 promotes the use of energy management standards via onsite training of Russian representatives by European energy experts and by organizing a seminar focusing on theories and standards for energy management according to the international energy management standard, ISO 50001.

WP 4 studies feasible Financing Models required for up-scaling and realizing the proposed energy efficiency improvement actions. Proven Nordic financing models and their applicability to the Kaliningrad oblast will be analyzed and these results are documented as a project publication.

In WP 5, the obtained results are multiplied to other regions of Northwest

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Russia. Clear feasible plans for the project results multiplication are produced in this work package.

Overall objective of the RENSOL work package 1 is to build awareness and knowledge on solutions for energy efficient buildings and street lighting applications. The research for RENSOL WP 1 has been done by literature reviews containing both scientific and marketing publications; by interviews with experts in Finland and in Russia; and by site inspections, simulation studies and renovation cost analyses for two example cases in Kaliningrad Oblast. The studied cases comprise a soviet-era kindergarten and residential building, which were selected as examples of typical public and private buildings in Kaliningrad Oblast.

In WP 1, co-operation has been done between Lappeenranta University of Technology, Environmental Center “ECAT-Kaliningrad” and Immanuel Kant Baltic Federal University for producing feasible renovation proposals for the example cases in Kaliningrad Oblast.

ECAT-Kaliningrad and IKBFU have communicated with involved municipality personnel from Svetlyj and Gurievsk, who have given permission to make practical installations and also provided realistic feedback concerning the practicality of given renovation proposals.

Besides project-related discussions, a possibility for writing research papers in co- operation with IKBFU has arisen during the project for having further academic collaboration between LUT and IKBFU. In addition, LUT, ECAT-Kaliningrad and IKBFU are also organizing video conferences between Finnish and Russian students about energy and energy saving for the Green Light project during autumn 2013.

The research findings and proposals of RENSOL WP 1 are further used in the work package 2 by ECAT-Kaliningrad for deploying practical knowledge in small scale pilots. This work package has especially involved communication with local municipal organizations and their personnel, as for instance kindergarten buildings and street lighting systems are under the responsibility of municipalities. In practice, good communication is essential here to ensure that the municipality is actively participating to the project and the

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proposed efficiency improving solutions are understood and accepted by the municipality personnel.

In addition, the research findings related to the possible financing models and practical barriers can be utilised as background information in work packages 4 and 5.

This report is the documentation of research findings and proposals in RENSOL WP 1, introducing Nordic solutions to improve energy efficiency in buildings. Based on available knowledge, basic framework for realizing a successful energy efficiency improvement project is first explained. Two example cases in Kaliningrad Oblast are then studied with a modelling tool, and their energy efficiency improvement potentials are determined.

Based on these results, suggestions for actions are given.

This report is divided to nine main chapters with the following contents after this introduction chapter:

Chapter 2 provides a basic introduction to barriers and issues that prevent energy efficiency improvements in buildings. It also shows generic action recommendations and reviews Nordic solutions allowing improvements in building energy efficiency. Especially political and financial possibilities are studied in the chapter. Chapter also introduces main points of a successful energy renovation project that aims to the improvement of building energy efficiency.

Chapter 3 presents Nordic products and solutions allowing improvements in building energy efficiency. Especially technical possibilities are studied in the chapter including also the energy efficiency of electrical appliances.

Chapter 4 discusses on the energy efficient street lighting. It provides main guidelines for having lighting renovation project and presents some pilot cases, where lighting energy efficiency has been improved with the use of LED lighting technology.

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Chapter 5 describes main parts of the energy renovation projects that aim to improvement of building energy efficiency. Finnish energy renovation examples with their documented effects are also presented in the chapter.

Chapter 6 introduces methodology and tools that were used to evaluate two pilot buildings studied in this project. Also reasons for selecting the example cases are highlighted in the chapter.

Chapter 7 introduces the kindergarten building, evaluation results for its insulation- related energy efficiency and suggestions for further actions with rough cost approximations.

Chapter 8 studies a five floor residential building with the corresponding evaluation for its insulation-related energy efficiency. Suggestions for further actions are again given with rough cost approximations.

Chapter 9 provides the summary of this study and obtained results.

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Chapter 2

2 Factors affecting energy efficiency in buildings

Energy consumption in building is affected by its technical characteristics and appliances, condition, location and surrounding climate, and by the people living in the building.

Therefore effective improvement of building energy efficiency requires not only technical improvements, but also behavioural changes.

Realization of improvements can be helped through regulations or by motivating building owners with education and economic benefits such as incentives. The topic has been thoroughly studied in the Energy Efficiency in Buildings (EEB) project organized by World Business Council for Sustainable Development [WBCSD, 2009], where the following three levers were given for improving energy efficiency in buildings:

1) The right financial mechanisms and relationships to make energy more valued by those involved in the development, operation and use of buildings, and to stimulate investment in energy efficiency.

2) A holistic design approach, from city level to individual buildings, to encourage interdependence and shared responsibility among the many players in the building value chain. This relates to integrated design, incentives that stimulate whole building action rather than encouraging changes only to individual elements and using advanced technology as part of an integrated solution to energy reduction.

3) Behavioural changes to achieve action on energy efficiency by building professionals and building users. A variety of approaches are needed to motivate people, including mobilization campaigns, clear incentives, training and education.

This chapter points out practical barriers that should overcome in order to improve housing energy efficiency. Chapter also introduces practical actions that need to be done to realize energy efficient buildings.

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2.1 Practical barriers

EEB project has identified several barriers for improving energy efficiency in public and multi-family residential buildings, which describe well the situation also in Russia:

Split incentives – meaning that the benefit of energy savings does not go to the person making the investment. This is especially true in buildings, where heating costs are not paid by the building owner, or the user and owner are financially two different instances.

Tenants have no incentive or motivation to save energy, for instance heating costs may be fixed, or there is no possibility to control heating system operation. In Russia, possibility to save heating energy is often limited, as buildings are directly connected to the district heating network (no room- independent possibility to control temperature) and the energy price does not motivate to improvement actions.

Financial constraints – multi-family housing residents often have low incomes.

Although they stand to save the highest percentage of income, they are likely to have the greatest difficulty paying for efficiency improvements.

Misperceptions – energy efficient, multi-family housing is still perceived in the marketplace to be much more expensive to build than standard construction.

This should be remembered when new buildings are designed. In the case of older buildings, costs of the insulation-related energy renovation may become substantial, meaning that the energy renovation may be as costly as constructing a new building.

Building market sector in general is diverse and complex: as a typical building project has several participants with different roles. Therefore efficiency improving actions should be supported in all levels.

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Fig. 2.1: Commercial relationships in the building supply chain. Complexity of interactions among these participants is one of the barriers to energy efficient buildings. [WBCSD, 2009].

Besides the generic levers, The EEB project has resulted six recommendations to generally overcome the noticed barriers for improving building energy efficiency:

1) Strengthen building codes and labelling for increased transparency.

2) Incentivize energy-efficiency investments.

3) Encourage integrated design approaches and innovations.

4) Develop and use advanced technology to enable energy-saving behaviours.

5) Develop workforce capacity (expertise) for energy saving.

6) Mobilize for an energy-aware culture.

Of these actions, improvement of possibilities to have incentives for energy-efficiency investments and feasible energy-saving technologies are studied further in this project report.

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Fig. 2.2: Recommendations of EEB project. This project report focuses on the feasible energy-saving technologies and financial instruments supporting energy efficiency improvements in housing. [WBCSD, 2009].

2.2 Political measures in Nordic countries

The Nordic countries have often been seen as “fore-runners” of energy efficiency in buildings – in both the implementation of policy instruments and the evaluation of effects. Since the 1970s, the Nordic countries have introduced a range of policy instruments for energy conservation in buildings. The choice of instruments and experiences however differs between countries. This chapter represents main findings originally given in [Kiss, 2010].

Over several decades the Nordic countries have introduced a number of policy instruments for a more efficient use of energy in buildings, e.g. building codes, subsides, labels and declarations, information campaigns and energy taxes. However, the choice of instruments and the experiences differs between the countries: we can talk about a Swedish way with the use of extensive subsidies, a Finnish way with focus on voluntary measures, a Danish way by actively implementing different types of policy instruments including their evaluations, and a Norwegian way with the focus on training and

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education. Examples of policy actions in Nordic countries are shown in Table 2.1 and in Fig. 2.3.

Table 2.1: Some of policy measures for improved efficiency in households in Nordic countries [Nordic Council of Ministers, 2007].

Country Measure

Finland

Energy conservation program for municipalities and non- profit housing properties (2002)

Energy conservation program in oil-heated buildings (2002)

Denmark

Energy saving activities by electricity, natural gas and DH companies (2001)

Energy labeling of larger buildings (1997) Energy labeling of smaller buildings (1987) Energy labeling of electrical appliances (1993) Norway Grants to electricity savings in households (2003)

Labeling and energy efficiency requirements on appliances (1996)

Sweden

Grant to convert from electric heating or fossil fuels to DH or heat pumps (2006)

Information campaign (2006) Energy declarations (2006)

Building regulations 1960s-

Energy labelling for large and small buildings 1979-

Energy and CO₂ levies 1990s-

Electricity audits 1990s-

Energy management in state buildings 1992-

Energy efficiency obligations for energy companies 2006-

Energy declarations 2006 Electricity

saving trust 1996-

Knowledge center for energy savings in buildings 2008-11

Tighter building regulations in 2010 and 2015

Fig. 2.3: Timeline of key policy instruments implemented in Denmark [Kiss, 2010].

Basically the instruments can be classified as:

Traditional policy instruments, including building codes, regulations, subsides and taxes, supported by information campaigns and education.

Innovative policy instruments, such as initiatives for networking between diverse actors in the building sector, high performance building codes as a voluntary option, technology procurement, labels, declarations, and

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professional trainings on energy efficiency.

Policy evaluations.

Organizational matters.

Typical examples of policy instruments are the energy and carbon taxation, different measures (campaigns, networking, building codes) towards energy efficiency and fiscal support for increased use of renewable energy sources and energy efficient devices [Nordic Council of Ministers, 2007].

2.2.1 Traditional policy instruments

Regulatory instruments such as building codes and regulations are generally viewed as one of the most effective ways to improve housing energy efficiency – if their enforcement can be ensured. In Denmark, the evaluation conducted by Energy Analysis, Niras, RUC and 4-Fact states that building codes have been important in reducing energy consumption in new buildings. There are high expectations for the long-term and strategic tightening of building codes in 2010 and 2015 in Denmark. Finland has also taken stricter building codes in use in 2012.

In general, economic instruments show diverging results. They can lead to high savings, and can also be helpful to kick-start a market, but they can also be less effective. With taxes, we can internalize negative externalities, increasing energy prices.

For instance, taxes can be used to regulate energy consumption via higher costs.

However, there are limits on how much taxes can be raised and the impact of higher prices, especially in the longer term. Taxes should be combined with strong advocacy efforts that convey a general knowledge of energy efficiency and provide specific guidance on how energy efficiency can be realised. Taxes and awareness should then also be combined with instruments that support the introduction of new technologies, such as research and development, technology procurement, public procurement, and strategic investment. Energy taxes together with support for the use of energy efficient solutions have shown to be effective to support energy efficiency in the Nordic countries.

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About information activities, it is often very difficult to evaluate their impact and actual effect. However, this should not undermine the importance of information activities in supporting other policy instruments and raising the profile of energy efficiency in general.

2.2.2 Innovative policy instruments

Within the Nordic countries a number of innovative policy instruments have been developed over time. Such instruments include initiatives for networking. Cooperation with diverse actors in the building sector is required for increased energy efficiency, particularly for promoting and implementing very low energy buildings.

To further promote enhanced energy efficiency in buildings, high performance building codes as a voluntary option is suggested in several countries. This can be a guideline for those that want to go beyond the average standards and create foundations for greater innovation. In addition, Nordic countries are developing additional voluntary standards for passive and low energy houses.

Greater and targeted support for professional training or education on energy efficiency for architects, engineers, designers and professionals in the building industry appears also to be a necessary foundation for a market for energy efficiency.

2.2.3 Organizational matters

Organizational structures related to energy efficiency are often dispersed in the Nordic countries. One exception may be the Danish Electricity Saving Trust. One way to better coordinate information operations and activities on energy efficiency may be to invest in such an energy trust, as the Electricity Saving Trust in Denmark. This trust would be able to coordinate and strategically work with energy efficiency in general and specifically work with campaigns, subsidies, and provide qualified advice and training for households and enterprises. Furthermore, it could work on coordination between the players on the market. Funding could be through government and private funds or through a fee that is channelled through energy bills.

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Dedicated research centres on buildings and energy efficiency, such as the Research Centre on Zero-Emission Buildings established in Norway, appear to be important to create a critical mass of expertise that can carry out regular, in-depth and scientific research and evaluations. This centre is an exciting development for research on zero- emission buildings in Norway, but also for the Nordic countries. The ambitious vision of the centre is to eliminate the GHG emissions caused by buildings.

2.2.4 Policy evaluations

Improvement of energy efficiency over the long term will require different types of policy instruments at different stages. As stated in [Kiss, 2010], except for the case of Denmark, where an overall policy assessment had been carried out, there is no strategic evaluation approach with a focus on how to improve learning. In Finland, both ex-ante and ex-post evaluations are conducted, mainly concerning the possible energy savings and GHG emission reductions as well as the impact of EU Directives the evaluations are undertaken in a rather sporadic manner. It is also seen that the vast majority of policy evaluations focus on cost effectiveness and economic efficiency with less emphasis on innovation effects. Furthermore, across the Nordic countries, existing policy instruments in the whole have had very moderate effects on innovation, typically resulting in incremental changes in existing building practices and diffusion of existing technology. Market transformation, improved networking between diverse actors, and new technologies and systems are vital to realising more significant energy savings in buildings.

2.3 Suggested mechanisms for financing capital repairs and energy efficiency improvements in multi-family apartment buildings

Possibilities and practical barriers for energy efficiency improvements in Russian residential buildings have been extensively studied within the “Program on improving urban housing efficiency in the Russian Federation” [EBRD, 2012a]. Especially the report on key measures for capital repairs of residential buildings lists different applicable renovations that can be carried out for residential buildings [EBRD, 2012b]. The report proposes three different renovation packages that can be carried out for the building. Of the proposed packages, the energy efficient option contains following actions:

1. Measures designed to improve heat retention properties (heat insulation) of

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enclosing structures of buildings, such as roof and walls.

2. Measures aimed at a complete reconstruction (replacement) of in-building utility services, such as heating system and water pipes.

3. Measures to improve heating and hot water supply systems in buildings allowing controlling the firing rate for heating and hot water supply. In this case, heat loss due to imbalance of supply and demand (in a building) is reduced.

4. Measures designed to install single-building utility meters (heat energy meters, electricity meters, cold and hot water meters and natural gas meters).

5. An energy-saving measure consisting of installation of occupancy sensors in public spaces. This measure allows to automatically control light intensity in public spaces.

The project has also provided proposals to have sustainable financing solutions to realize these renovations. According to project summary for policymakers, sustainable financing requires

1. Regular contributions (on a compulsory basis, by all apartment owners) into a dedicated fund for maintenance and repair (the “collective building repair fund”) – an essential prerequisite in every multi-family apartment building.

2. Credit facilities extended by commercial banks to Homeowners’ Associations, Housing Cooperatives, or Housing Management Companies, facilitated through residents’ regular payment of contributions for the repair and maintenance of their building, held in a dedicated account or collective building repair fund for that purpose.

3. Financial support from government in the co-financing of capital repair projects and the provision of state guarantees to banks through dedicated state financial development institutions (guarantee agencies, specialized state banks, investment funds, and so on).

The project report also lists practical issues that need to be considered, such as current legislation in Russia that does not oblige building residents to be members of the Homeowners’ association or other form of collective residents’ association for the

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building [EBRD, 2012c]. In addition, project summary introduces a financing model that could be taken into use to improve possibilities for having energy renovations (see Fig.

2.4).

Fig. 2.4: Main actors and their functions in the proposed financing model for building renovations (capital repairs) [EBRD, 2012c].

2.4 Realization of a successful energy renovation project

Main steps of an energy renovation project according to [RIL 249-2009] are shown in Fig.

2.5. It is generally recommended that the building owner should have a long-term renovation plan (“building strategy”) with certain objective state for the building technical condition, which works as the basis for renovations.

When the renovation project is decided to be started, the current condition of the building needs firstly to be determined. Condition inspection should give information on the technical condition and repair need of the building. Depending on the renovation need, the inspection can have separate, detailed studies on the building condition (e.g.

material study of concrete walls) or it can be just a generic, visual study of the building condition. In practice, the visual study can also consider the present use and condition of the building, resulting in a list for improvements and renovation needs in the building. In any case, the condition inspection should provide a report on the building condition and a long-term plan or suggestions for the renovation. If possible, condition inspection

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should be performed by an independent professional, as an erroneous inspection report may lead to unneeded or inefficient repairs.

In practice, these suggestions need to consider the previously mentioned objectives of the renovation: if the objective is to have a low-energy building, then required actions may be more costly than in the case of building with B or C energy class. However, these can be compensated over time by lower energy consumption resulting in lower life-cycle costs. Therefore general objectives of the renovation need to be defined for instance according to their economic and technical effects. Improvement of building energy efficiency to a certain level (for instance from E to B level) or optimization of building life- cycle costs are the typical objectives for the renovation project.

Fig. 2.5: Main flowchart of a renovation project [RIL 249-2009].

When the building owner or consultant has knowledge on the general renovation objectives and current technical condition of the building, he can choose different concepts to reach this objective state: an energy renovation can contain improvement of building insulation (walls, floor, roof), replacement of windows, improvement of ventilation system with heat recovery, decrease of water and electricity consumption etc.

with different product alternatives and different levels of costs. Often this project phase Complainment or

order Long-term

renovation plan

Condition

inspection Separate condition studies

Selection of the concept

Realization (renovation)

Inspection of the renovation

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is recommended to be carried out by an experienced consulting company, which can suggest and compare different possible concepts and provide basic design documents for the renovation (needed for renovation inquiries), although indicative calculations can be done with existing calculation spread sheets. It is also very important that the consulting company has understanding on the local technology: for instance insulation improvements may not decrease building heat consumption at all, if the district heating system and related water radiators do not have thermostats. Correspondingly a ventilation system with heat recovery is useless if the air leakage in the building is too significant. Selection of the concept may require detailed analysis on the effects of different improvements on the building energy efficiency: for instance selection of renovation actions for walls and ventilation system are done in this phase. Main reasons (both economic and technical) for the selected concept and renovation actions should however be understandable by the building owner.

When the concept has been selected and renovation actions have been decided, basic design documents can be used as a template for final design documents and also as a basis for bidding competition on the actual renovation. Often it is most beneficial that the same consulting company takes care of the final design documents, and selection of the construction company, if they have knowledge on the local companies. If several companies are participating to the renovation, the consulting company should be able to coordinate the actual renovation.

When the energy renovation has been carried out according to local regulations, it should be verified afterwards. This means both technical inspection of the renovation and also determination if the energy renovation has been successfully improved energy efficiency of the building.

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Chapter 3

3 Review of Nordic Best Technologies for Energy Efficiency Improvements This chapter presents Nordic practices and different technical solutions that can allow improvement of energy efficiency in housing. Introduced products are seen applicable for energy renovation projects. Renewable energy sources are also presented in this chapter, main focus being in the solar energy systems that can be installed and used separately for each building.

3.1 Technologies allowing improvements in building energy efficiency

Known and proved solutions to improve building energy efficiency are retrofitting the building insulation, replacing the old heating systems, use of heat recovery systems in ventilation, and also improvement of electrical appliances such as lighting systems. There are several Nordic manufacturers providing products to realize these savings. Therefore, this chapter introduces some products (and manufacturers), which could be used in the improvement of building energy efficiency. Contents of the chapter are partially based on Norden report “Nordic Energy – clean, clever and competitive” [Norden, 2008].

In the EU, 40% of energy is consumed in buildings, more than either in transport (32%) or industry (28%). Partly because of its large share of total consumption, the largest cost- effective savings potential lies in the household (27%) and commercial buildings sector (30%):

In households, retrofitted wall and roof insulation offer the greatest opportunities to save energy, while improved energy management systems are important for commercial buildings.

2/3 of energy used in European buildings is accounted for by households; their consumption is growing every year as rising living standards are reflected in greater use of air conditioning and heating systems. Half of the projected increase in energy need for air conditioning – expected to double by 2020 – could be saved through higher standards for equipment, particularly for electrically driven cooling units. In addition, minimizing energy use inside

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buildings (lightning, kitchen machines etc.) or using non-electricity-based cooling methods could essentially reduce the demand for electricity.

10 million boilers in European homes are more than 20 years old; their replacement would save 5% of energy used for heating. Significantly more could be saved by switching to renewable sources of energy.

30-50% of lighting energy could be saved in offices, commercial buildings and leisure facilities by using the most efficient systems and technologies, such as Light Emitting Diodes (LED).

Nordic companies offer intelligent, efficient and integrated solutions for reducing the energy consumption inside buildings, for HVAC, building automation, lighting, domestic hot water and waste management. Many of these companies offer complete tailor-made solutions specified to customer needs that are often designed to be used in combination with renewable sources of energy, especially geothermal, such as ground heat pumps, or solar-based systems.

3.2 Insulation products, windows and doors for buildings

As regulations concerning building energy consumption have tightened over the years, it has also increased requirements for the insulation of the building, which is normally the main component affecting the building heating energy consumption. There are several product manufacturers, such as Paroc and Isover, who provide insulation products for buildings. These products can be used during façade and roof renovations to improve building energy efficiency.

As an example, Paroc is participating to Innova project, where prefabricated façade elements with substantial insulation are used to renovate a 1970s Finnish apartment building into a passive building (see Fig. 3.1). This approach provides several benefits including lower costs, faster renovation process and no need construction scaffolds or overall covering of the building. Paroc is also providing products and concepts for new passive houses, marketed under the name “Energywise house” [Paroc, 2012a].

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Fig. 3.1: Paroc’s passive house concept is based on prefabricated facade elements with substantial insulation and energy efficient windows [Paroc, 2012b].

Windows and doors are typical sources for air and heat leakages, which is why their correct selection and installation is important to ensure pleasant and energy efficient living atmosphere, when a façade or window renovation is carried out. Nowadays window manufacturers (e.g. Tiivi Oy) have products even with A+ energy classification, meaning a 3+2 layered window with the U value of 0.67 W/m²K. As a comparison, the present U value requirement for windows and doors in Finland is 1.0 [RakMK C3, 2010].

Correspondingly also doors are available with U value below this limit.

Fig. 3.2: Examples of Tiivi window models and their U values [Tiivi, 2012].

3.3 Heating, ventilation and air conditioning systems

Typical buildings’ heating systems in the Nordic countries are electric heating, district heating, oil heating, heat pumps and wood heating. There are some others heating types also, but those are not very common. [Statistics Finland, 2012] Electric heating can be divided into storage, partial storage and direct heating systems. In turn, air-air heat pump, air-water heat pump, exhaust air heat pump, ground source heat pumps are the

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most common heat pump systems.

The need for heating capacity is based on the demand for space heating and warm water heating. Demand of needed heat and warm water capacity is dependent of building type and size. All available heating system alternatives cannot work for the both systems or as a main heating system [Motiva, 2012]. For instance, air-air heat pump cannot heat the warm water or it cannot be a main heating system. On the other hand, it should be noted that requirements for the heating system between new and existing buildings may be different. In practice, it might be difficult and economically unprofitable to change heating system e.g. from direct electric heating system to district heating system, if the building structure does not allow easy installation of water radiators. Correspondingly, the existing district heat system may not allow installation of air-water heat pump

In existing district heat systems, update of the system components and addition of controllability are key possibilities to reduce heat energy consumption in buildings, if this is allowed by the building insulation. Practically, district heat systems should be two- circuit systems, meaning that the building heating system is separated from the municipal district heating network. This provides several advantages that are more discussed in detail in [Eliseev, 2011].

Gebwell’s G-Power unit is an example of device used in Finnish kindergarten and apartment buildings to separate municipal network and building’s own heating system.

This unit contains circulation pumps, valves and control system allowing basic control of the heat distribution.

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Fig. 3.3: Gebwell G-Power district heat unit that can be used to separate municipal and building heat network from each other, allowing controllability of the distributed heat. [Gebwell, 2012].

Besides having controllability with two-circuit systems, living quality in buildings with district heat can be improved with the renovation of water radiators. If the radiators are installed with thermostats, significant energy savings can be obtained as heat water consumption can be limited according to the desired room temperature.

Enervent Oy Ab produces domestic and commercial ventilation applications. The company uses also heat pump technology combined with heat recovery. Heat pumps that represent green technology allow differences in temperatures to be used to provide energy efficient domestic and industrial heating and cooling. Heat recovery is a way of ensuring that heat is recovered from exhaust air and returned for use inside building rather than being lost to the outside air. This means better efficiency and lower heating bills.

Enervent has introduced the Greenair HP to meet growing market requirements for effective air handling systems. The system is suitable for new construction or renovation projects, particularly for buildings where external units are restricted by planning regulations as some models have no outside units; everything is installed inside the

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building. “Once in operation, the Greenair HP offers long term energy savings and up to 40% reduced energy bills. Hence, payback times can be as short as only two to three years compared to cooling and heating combined with traditional ventilation with no energy recovery,” points out Mr Timo Luukkainen, Managing Director at Enervent.

The Greenair HP combines heat pump technology with rotating heat exchangers. A heat exchanger works by capturing and storing heat from the warm exhaust air and then transferring this energy to the fresh air before it is blown into the rooms. The rotating or regenerative heat exchanger used by Enervent has a yearly efficiency that can be up to 85%. Competing technologies by comparison can in sub-zero temperatures often achieve between 30 and 40% efficiency.

Regenerative heat exchangers can save energy also in cooling by reversing their action.

Heat exchange technology can also be combined with heat pumps, or any other source of heating for smaller or larger installations. The company offers a versatile control system that works automatically to provide precise ventilation control according to user requirements. Ventilation can be regulated by carbon dioxide and humidity levels. The control system automatically regulates heating and cooling also taking into account seasonal differences.

Fig. 3.4: Enervent’s Greenair HP unit is a combination of ventilation system with heat recovery and of a heat pump [Enervent, 2012].

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In the case of buildings with a natural ventilation system, renovation and installation costs can notably affect the feasibility of having mechanical ventilation system: if the natural ventilation system is working correctly (e.g. there is no visible moisture in windows) and if the installation of ventilation ducts is not easily possible, then the installation of mechanical ventilation system with required ducts may not be economically justifiable [jENERGIA, 2011]. If there are problems with the natural ventilation operation, at least the air inflow to the building can be easily improved with air supply valves. If possible, these valves should be separate parts that are installed through the wall or window [Terveysilma, 2013]. A less efficient, but easier to install option is to have new windows with integrated air supply valves or to install valves onto the windows [Dry-Air, 2013].

If natural ventilation operation cannot be improved enough in an existing building and it is replaced with a mechanical ventilation system, it should have high heat recovery efficiency: besides the needed ductwork for the ventilation system, the efficiency of the heat recovery system is major factor affecting the payback time of the renovation [jENERGIA, 2011]. In buildings having already ducts for the exhaust air (typical in Finnish residential buildings), installation of new ventilation system with heat recovery is often a justified action, if additional ducts can be installed to the apartments.

Fig. 3.5: Air supply valves provided by VELCO and Dry-Air Oy in Finland. [Terveysilma, 2013], [Dry-Air, 2013].

Air heat pumps produced for instance by IVT Nordic are an applicable alternative to improve heating energy efficiency, if the original heaters are used with electricity and ease of installation is important. As air heat pumps can be installed onto the wall, they

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are good alternative for additional electric heaters, if both heating and cooling are needed in the building. Air heat pumps are also feasible choice for domestic water heating that is often realized with electric boilers in Russia. Following technical details describe some benefits of air heat pumps [IVT Nordic, 2012a]:

Heating power 0.9-6.5 kW with 0.16-1.7 kW electricity consumption (flow rate within 5.7-11.2 m³/min)

Cooling power 0.9-4.0 kW with 0.2-1.25 kW electricity consumption (flow rate within 5.2-9.3 m³/min).

More costly, but also more efficient heat pump solutions use geothermal energy. As these solutions require more space for their installation (see Fig. 3.6 as an example), their applicability with existing buildings or in the case of single building is seen limited in the city area. Practical questions are that is there applicable space for heat pipes and are there limiting regulations affecting the installation.

Fig. 3.6: Geothermal heat pump system requires installation of piping to the ground or for instance to the sea [IVT Nordic, 2012b].

However, if buildings are located near seawater or lake, and if the geothermal heat pump system can be connected to a municipal (district) heating network providing heat to several buildings, then the geothermal heating system can be considered as a potential source of clean heating energy for larger number of buildings. As an example, Suvilahti residential area in Vaasa, Finland is using geothermal energy from the seawater as a

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source for heating and cooling of 42 buildings [Mateve, 2008]. Practically the residential area has a separate low-energy network, from which each building is taking the needed heating/cooling with a heat pump [Motiva, 2010]. Informed results from the project are promising, indicating a good example of area-wide energy efficiency improvement project.

3.4 Energy efficiency in electrical appliances

Electricity consumption has increased during the last decades and it has been predicted that consumption will also increase in the future. Electricity consumption varies a lot in different buildings and between different appliances. In [Adato, 2006], residential electricity consumption has been forecasted in future with the methods of business as usual (BAU) and best available technique (BAT). The results are presented in table 3.1.

Table 3.1. Residential electricity consumption in 2006, 2015 and 2020 in Finland. Technical saving potential in 2015 and 2020 [Adato, 2006].

Despite that results of the table are made for Finland, it can be seen that indoor lighting has the greatest saving potential in energy efficiency of electrical appliances. The next greatest saving potential can be achieved from the refrigerating appliances and HPAS- appliances.

Indoor lighting can be executed in the many ways. EU energy efficiency directive

BAU BAT BAU BAT Saving potential

2006 2015 2015 2020 2020 2015 2020

GWh GWh GWh GWh GWh GWh GWh

Refregerating appliances 1 627 1 405 1 028 1 227 767 377 459

Cooking 653 683 618 693 577 65 116

Dishwasher 261 288 266 290 268 22 22

Washing 392 412 357 423 347 56 77

Entertainment electronics 834 1 177 888 1 076 860 289 215

Computer appliances 408 323 121 240 87 202 153

Sauna heater 852 930 930 971 971 0 0

HPAS-appliances 669 741 545 809 566 196 243

Under floor heating 206 221 221 227 227 0 0

Car heating 218 221 221 225 225 0 0

Indoor lighting 2 427 2 233 843 2 002 845 1 389 1 157

Outdoor lighting 89 95 21 99 22 75 77

Others 2 572 2 600 2 600 2 650 2 650 0 0

Total 11 207 11 336 8 657 10 931 8 412 2 669 2 519

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prohibited using of incandescent lamps. Some typical lighting trends have been listed in [Adato, 2006], which are:

the amount of lamps in households is increasing;

improvement in the quality of lighting;

the amount of fluorescent lamps is increasing.

Approximately, more than a tenth of all electricity consumption is consumed in lighting in Finland. For instance, lighting at school might consume a fifth and hospital a third of the all electricity usage in that kind of buildings. Recently has been a lot of talk of removing of light bulbs from the markets. Many other changes in lighting sector in Europe will also appear in the future. For example in Finland, the biggest parts of the street lighting have been lighted with mercury lamps, which will get off the markets in the next years.

[Motiva, 2009]

The Energy Service Directive obliges to Finland to use electricity more efficiently. The Directive emphasizes the role of public sector to achieve the targets. EU’s EcoDesign Directive orders about lighting: [Motiva, 2009]

Import of mercury lamps in the markets will be forbidden in the beginning of 2015.

New fluorescent lighting systems have to include electronic ballasts from 2017.

Light bulbs will be removed from the markets in stages by 2012.

Energy saving potential in lighting can be 30-70 % depending on the building by the latest technology, modern lighting control system and refinement of the saving targets. Energy consumption in lighting is depending on many things: lamps, lighting, the position of lighting, electronic ballasts and control system. The using light only when it is needed, is one of the most important things. It is good to understand that decreasing of electricity consumption does not necessary decreasing of quality and the amount of light. The new technology can improve the quantity and quality of lighting and still save in operational costs. [Motiva, 2009]

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If the traditional T8 2x36W fluorescent lamps, including the electronic ballast and lighter, are replaced by the modern T5 1x35W fluorescent lamps, decreases the overall costs by 30%. This calculation includes investment, energy costs, service and maintenance.

[Motiva, 2009]

3.5 Renewable energy sources

Renewable energy sources such as photovoltaic solar panels, solar energy collectors and wind turbines offer possibilities to improve housing energy efficiency. Especially solar panels and collectors can be used to replace electrical water heaters during summertime.

In a sun collector system, solar thermal radiation is absorbed by the collector panel typically mounted on the house roof. From there heat is carried by the heat transfer fluid and passed to the hot water tank through the exchange coil [Rica, 2012]. For instance, Rica, ROTO and Savo-Solar provide sun collector systems both in Finland and Russia.

Fig. 3.7: Sun collector system provided by Rica can be used for water heating [Rica, 2012].

Another option is to use photovoltaic (PV) solar panels to produce electricity into the building or to the electricity network. In such case, there can be PV solar panels on the building roof, and an inverter that converts the produced electricity onto the alternating current. An example of such installation is located for instance in Lappeenranta, Finland, and the 2.95 kW plant has been able to produce 1780 kWh of electricity during five months.

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Fig. 3.8: PV solar plant on the roof of residential building in Lappeenranta, Finland.

Germany is currently a world-leading country considering the solar energy products and use of solar energy, as individuals have a possibility to connect PV solar systems into the network and have a feed-in tariff (remboursement) on the produced electricity. The same approach is currently proposed to be taken in use in Finland and in other Nordic countries. Some examples of known solar system manufacturers are SMA Solar Technology AG and SunPower Corporation.

Besides PV solar panels, wind turbines are an option to generate electricity locally.

However, there are several reasons why solar panels are more feasible solution for renewable energy:

Panels have no moving parts requiring maintenance

Easier installation, no need for separate construction permits

Wind turbines are more prone to mechanical failures (high winds, lightning).

Third alternative option to generate electricity could be the use (or atleasting updaring) of micro-sized CHPs (combined heat and power) plants for buildings, and natural gas as the energy source. Fig 3.9 presents an example of possible benefits in using a CHP system instead of separate generation of heat and electricity.

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Fig. 3.9: Efficiency comparison of natural-gas-based CHP and separate generation of heat and electricity [Viessman, 2012].

3.6 Summary

There are several technical solutions allowing improvements in the housing energy efficiency. Of the introduced solutions, improved insulation, control of the heating, and sufficient ventilation with heat recovery are seen as effective methods to improve both housing energy efficiency and quality of living. Renewable energy sources are available in different scales, and for instance micro CHPs can provide additional option for using natural gas. For this project, tests with air heat pumps, solar PV panels or sun collectors are seen technically possible because of their easier installation and lower costs compared to the CHP units and wind turbines.

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Chapter 4

4 Energy efficient street lighting

Street lighting is one of the most visible and expensive responsibilities of a city or community: inefficient lighting wastes significant financial resources each year, and poor lighting creates also unsafe conditions. It is shown that energy efficient technologies and design can cut street lighting costs dramatically, often by 25-60%. In Europe, annual savings 38 TWh of electricity could be reached by use of intelligent streetlights (adaptive lighting).

This chapter introduces solutions for energy efficient street lighting and also goes through the generic steps to increase energy efficiency in the street lighting. Contents of the chapter are based on references [E-Street, 2007] and [USAID, 2010].

Generally the most common reasons for inefficient street lighting systems in municipalities are:

Selection of inefficient luminaries Poor design and installation Poor power quality

Poor operation and maintenance practices

It is shown in E-Street project that as much as 50-70 % of the original energy consumption can be saved by reinvesting in new technologies where old inefficient luminaries have been replaced, lighting arrangements have been changed and stepless dimming in relation to adaptive lighting has been introduced. By replacing the luminaries only, between 40-50 % energy reductions is achieved.

Fig. 4.1 introduces generic steps for project to increase energy efficiency in street lighting.

As a basis, requirements and needs set for the lighting should be known to determine the best available technology and design to meet the lighting requirement. Existing lamp technologies are listed in Table 4.1 and further information on their characteristics can be

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found from [USAID, 2010].

Fig. 4.1: Generic steps to increase energy efficiency in street lighting [USAID, 2010].

Table 4.1: Comparison of existing lamp technologies [USAID, 2010].

Lamp type Luminous

Efficacy (lm/W)

Colour Rendering Properties

Lamp life in

hours Remarks

High Pressure Mercury Vapour (MV)

35-65 lm/W Fair 10 000-

15 000

High energy use, poor lamp life

Metal Halide

(MH) 70-130 lm/W Excellent 8 000-12 000 High luminous efficacy, poor lamp life

High-Pressure Sodium Vapour (HPSV)

50-150 lm/W Fair 15 000-

24 000

Energy-efficient, poor colour rendering

Low-Pressure

Sodium Vapour 100-190

lm/W Very Poor 18 000-

24 000 Energy-efficient, very poor colour rendering Low Pressure

Mercury Fluorescent Tubular Lamp (T12 &T8)

30-90 lm/W Good 5 000-10 000 Poor lamp life, medium energy use, only available in low wattages

Energy-efficient Fluorescent Tubular Lamp

100-120

lm/W Very Good 15 000-

20 000 Energy-efficient, long lamp life, only available in

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(T5) low wattages Light emitting

diode (LED), (Golden DRAGON with Oval lens, 100 pcs., during operation at 350mA)

55 lm/W Fair 10 000-

50 000 (50%

light decrease)

Most energy-efficient technology, long lamp life, only available in low wattages (several pieces needed for a single lamp)

Intelligent Road and Street lighting in Europe (E-Street) project has produced an extensive research report considering improvements in street lighting systems [E-Street, 2008].

According to the report, approximately one third of the European roads and motorways are lit using energy inefficient 1960’s technology with mercury vapour lamps. These lamps consume a relatively large amount of electricity during their lifetime with limited efficiency. In addition they contain mercury and are therefore environmentally unfriendly. By shifting to high-pressure sodium lamps (HPS) or metal halide (MH) lamps efficiency improvement in the lamp itself can go as high as 40%. This could reduce total energy consumption for street lighting for Europe with approx. 15% taking into account 1/3 of the installed base is really old. A normal replacement would be from 250W to 150W means 40% reduction per Shifting all lamps (also the newer types) to most efficient lamps could reduce energy consumption another 5-10%. The total energy saving potential in lamps used is therefore approx. 20%.

The report discusses also about LED lamps, but it does not list efficiency improvement figures for the LED technology. According to the manufacturer information and more recent research reports, LED technology can provide further energy savings of 40 % compared with the previously mentioned high-pressure sodium lamps and metal halide lamps: as an example a 105 W LED light can be used instead of previously mentioned 150W HPS or MH lamp. As a practical example, Gurievsk town located in Kaliningrad region, Russia is replacing the existing obsolete street lamps with low-energy LED lights, which is expected to reduce electricity consumption by 270,000 kWh per year. In economic terms, this means an annual saving of 1,267,000 roubles.

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In conclusion it is possible to reduce the amount of energy used significantly going from an old to an entirely new situation. Replacing the lamp, luminaries and ballast will account for about 37% reduction in energy consumption.

Besides the change of the actual lamp, intelligent control of the lamps is shown to produce further cost savings. E-street project has verified that the intelligent road light control can result in further cost savings as it allows stepless dimming of individual lamps according to the changing weather conditions. An example of successful installation can be found from Oslo, as described in [CUD, 2008].

Fig. 4.2: Example on the intelligent road light control [CUD, 2008].

For the control, it is also good to observe the lighting times in street lighting. Finnish agency for energy efficiency Motiva has published a guideline book with the following information concerning the lighting time: good twilight setting to shutdown or start the lamps seems to be 20 luxes for light level. Already 20 minutes unnecessary lighting per day makes two hours in a week, which means about 50 € extra cost per year per street kilometer. [Motiva, 2009]

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Chapter 5

5 Improvement potential in the building energy efficiency

Energy efficiency of an existing building can be often improved with an energy renovation project. Objective of an energy renovation should be the improvement of building energy consumption to a certain level (e.g. defined by regulations) or optimization of building life-cycle costs and related emissions. The second objective practically means selection of renovation actions that result in the lowest life-cycle costs for the building and also an improvement in the building energy efficiency meaning less energy consumption. Energy renovations should be further seen as part of improvements that a building needs during its lifecycle.

5.1 Requirements of an energy efficient building

Building is a sum of several factors and smaller technical parts. Therefore an energy efficient building practically requires that its structures and technical solutions (heating, ventilation, electrical appliances) are sufficient, but also that the building is well built, maintained and correctly used. In the Finnish building professional’s publication concerning low-energy houses [RIL 249-2009], the main factors providing an energy efficient building are listed as shown in Fig. 5.1. Of these, following actions for an energy efficient building are especially important:

A good quality design and implementation process with efficient quality control. For instance the correct selection and installation of building materials are primary requirements for an efficient building.

Well working technical systems and solutions, such as use of heat recovery in ventilation systems and the use of electricity and water saving equipment.